Centre to Introduce New Job Guarantee Law to Replace MNREGA: What the Proposed VB-GRAMG Bill Means

The central government is preparing to introduce a landmark bill in Parliament that seeks to replace the existing Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) with a new and expanded rural job guarantee framework.

According to official sources, the proposed legislation—titled the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin): VB-G RAM G Bill, 2025—will be tabled in the Lok Sabha in the ongoing session. If approved, the new law will formally repeal MNREGA and introduce a redesigned employment guarantee programme aligned with the government’s “Viksit Bharat” vision.

One of the most significant changes under the proposed law is the expansion of guaranteed employment days. Sources indicate that the NDA government plans to increase the statutory guarantee from the current 100 days to 125 days of wage employment per rural household in a financial year.

WHY MNREGA IS BEING REWORKED

Discussions on restructuring MNREGA have been underway for several years within the Union government. The Union Cabinet has reportedly deliberated on both renaming the law and expanding its scope, reflecting concerns over implementation gaps and evolving rural livelihood needs.

While MNREGA remains one of the world’s largest social security and employment programmes, its performance has increasingly come under scrutiny, particularly with regard to the actual number of workdays generated per household.

ABOUT MNREGA: A QUICK BACKGROUND

The National Rural Employment Guarantee Act (NREGA) was enacted in 2005 and later renamed the Mahatma Gandhi National Rural Employment Guarantee Act on October 2, 2009, during the UPA government’s tenure.

Under MNREGA, every rural household with adult members willing to do unskilled manual work is legally entitled to at least 100 days of wage employment in a financial year. The programme has been a critical safety net for rural households, especially during droughts, economic slowdowns, and the COVID-19 pandemic.

WHAT OFFICIAL DATA REVEALS

Despite the statutory guarantee of 100 days, official data highlights a significant gap between promise and delivery.

In the 2024–2025 financial year, the average number of employment days generated per household under MNREGA stood at only around 50 days. Although 40.70 lakh households managed to complete the full 100 days of work last year, the figure has declined sharply in the current fiscal year.

So far this year, only 6.74 lakh households have reached the 100-day employment limit, raising concerns among states and policy experts about declining coverage and effectiveness.

COMMITTEE REVIEW AND GOVERNANCE CONCERNS

To address these issues, the Ministry of Rural Development—which administers MNREGA—constituted a committee in 2022 to examine state-wise performance, governance challenges, and structural limitations of the scheme.

The committee submitted its report last year, reportedly recommending reforms to improve accountability, enhance work availability, and make the programme more responsive to current rural employment realities.

STATES DEMANDING MORE THAN 100 DAYS

Several states have consistently demanded an increase in the 100-day work cap. Andhra Pradesh, Madhya Pradesh, Chhattisgarh, and Rajasthan are among the states that have formally sought an expansion of guaranteed employment under MNREGA.

While the existing law allows states to offer more than 100 days of work, the additional expenditure must be borne entirely by state governments—a condition that has limited uptake.

In the last financial year (2024–2025), only 4.35 crore person-days out of a total 290 crore person-days were generated using state funds.

States such as Maharashtra, Chhattisgarh, Odisha, Himachal Pradesh, Kerala, Rajasthan, Madhya Pradesh, and Telangana have used their own budgets to extend employment beyond the central guarantee, but such instances remain relatively rare.

WHAT THE NEW VB-G RAM G BILL COULD CHANGE

If enacted, the VB-G RAM G Bill, 2025 is expected to address many of these limitations by expanding guaranteed workdays and potentially integrating employment with livelihood creation, Skill Development, and rural asset building.

Government sources suggest the new framework will focus not only on wage employment but also on strengthening sustainable rural livelihoods, aligning job creation with long-term economic productivity.

OTHER LEGISLATION ON THE AGENDA

Alongside the employment guarantee bill, the government is also expected to introduce the Transforming India through Sustainable Use and Development of Nuclear Energy Bill, 2025 in the Lok Sabha.

Together, these legislative moves indicate the Centre’s intent to recalibrate both its social welfare architecture and long-term development strategy as India moves toward its 2047 goals.

As parliamentary debate unfolds, the proposed replacement of MNREGA is likely to trigger intense political and policy discussions, given the scheme’s deep impact on rural livelihoods and employment security across the country.